All Forum Posts by: Timothy Hero

In this market, I'd question what's the catch. Unless you're buying it at a deep discount, no $280k home rents for $2,500. You typically need to be in the $400-450k range to see those rents.

Sorry if this was already asked, but what's an average return per year, in terms of cash flow? If I live a busy life and don't have the time or care to invest on my own, but want to put, lets say $200k to work, is a 15% cash flow return reasonable?

While less than 10% of the mortgage industry offers 40-year mortgages, here's something to factor in: they often come in with a rate increase of 20-35 bps.

Assume 35 bps.

$300k mortgage at 7.25% (30-year): $2,046

$300k mortgage at 7.6% (40-year): $1,996

Technically, it lowers the monthly, but not by much once factoring in the rate adjustment.

I've brokered over 300 DSCR loans. Most lenders these days are 30 or 90-day seasoning. If you've owned for at least that, you're good.

If you do a rate/term refinance, where just the hard money balance is paid off, rates will be much better.

Expect 30-year fixed terms for the most part.

There's many on BP and even sometimes in Facebook RE groups. Be careful, however. Put yourself in the shoes of an investor: is the property in a good market? Can you net a solid profit, without having too much risk? If the borrower creditable? If the answer is no to any of these, don't count on capital being thrown your way.

I was referring to MFH.

Partner with someone who also has $80k to invest. Go 50/50 on a $800k property.

Just now seeing this about me, lol. Yes, I'm legit. I've brokered $75 million in DSCR and over 315 transactions. I can show proof if needed, lol.

Go DSCR. Fewer lenders in that space will do 5+, but the ones that do only require it to cash flow a 1.2 DSCR, decent credit, and a healthy market.